Revenue Performance - For the three months ended December 31, 2025, total revenues increased by $104 million or 2% to $5,182 million compared to the same period in 2024, driven by higher distribution and advertising revenues [88]. - For the six months ended December 31, 2025, total revenues increased by $278 million or 3% to $8,920 million, driven by higher distribution, advertising, and content revenues [92]. - Total revenues for the three months ended December 31, 2025, increased by $104 million or 2% to $5,182 million compared to $5,078 million in the same period of 2024 [100]. - Cable Network Programming segment revenues rose by $110 million or 5% for the three months ended December 31, 2025, driven by higher distribution, advertising, and content revenues [102]. - Cable Network Programming segment revenues increased by $175 million or 5% for the six months ended December 31, 2025, due to higher distribution, advertising, and content revenues [104]. - Television segment revenues decreased by $24 million or 1% for the three months ended December 31, 2025, primarily due to lower content revenues, partially offset by higher advertising and distribution revenues [107]. - Television segment revenues increased by $73 million or 1% for the six months ended December 31, 2025, driven by higher advertising and distribution revenues [109]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, increased by $119 million or 3% to $3,895 million, mainly due to higher sports programming rights amortization and production costs [90]. - Selling, general and administrative expenses rose by $70 million or 13% to $595 million, primarily due to marketing costs associated with the launch of FOX One and higher employee costs [91]. - Operating expenses for the Cable Network Programming segment increased by $73 million or 4% for the six months ended December 31, 2025, primarily due to higher sports programming rights costs [105]. - Television segment EBITDA decreased by $62 million or 30% for the three months ended December 31, 2025, attributed to revenue declines and increased operating expenses [108]. Net Income and EBITDA - Net income for the three months ended December 31, 2025, decreased by $141 million or 36% to $247 million, attributed to changes in the fair value of investments in equity securities [97]. - Adjusted EBITDA for the three months ended December 31, 2025, was $692 million, compared to $781 million for the same period in 2024, representing a decrease of 11.4% [119]. - Corporate and Other EBITDA decreased by $57 million or 70% for the three months ended December 31, 2025, and by $119 million or 78% for the six months ended December 31, 2025, primarily due to costs associated with the launch of FOX One [114]. Cash Flow and Financing - Net cash used in operating activities increased to $799 million for the six months ended December 31, 2025, compared to $204 million in 2024, primarily due to lower political advertising receipts and higher sports programming payments [124]. - Net cash used in investing activities rose to $393 million for the six months ended December 31, 2025, compared to $240 million in 2024, driven by increased investments and capital expenditures [125]. - Net cash used in financing activities surged to $2.142 billion for the six months ended December 31, 2025, compared to $553 million in 2024, largely due to stock repurchase activities [126]. - The Company has approximately $2.0 billion in cash and cash equivalents as of December 31, 2025, along with an unused $1.0 billion revolving credit facility [120]. Tax and Compliance - The effective tax rate for the three and six months ended December 31, 2025, was 23% and 24%, respectively, higher than the statutory rate of 21% due to state taxes [96]. - The Company is in compliance with all covenants under its revolving credit facility and does not anticipate any noncompliance [121]. Dividends and Acquisitions - The Company declared a semi-annual dividend of $0.28 per share, payable on March 25, 2026, with a record date of March 4, 2026 [128]. - The Company is evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve cash or the assumption of additional indebtedness [123].
Fox(FOXA) - 2026 Q2 - Quarterly Report